Swing trading with Butterflies

Discussion in 'Journals' started by Global OptionsTrades, Jul 30, 2021.

  1. Got another signal to run a Call Fly - rather than usual Put flies - so opened a small experimental position:

    Trade date: 18 October 2022
    Security: TSLA
    Price at opening: 220.7
    Implied Vol 110.1%
    Direction: Call
    Expiry date: 21 October 2022
    Strikes: 230 / 235 / 240
    Structure: 1 / 2 / 1
    Opening Spread: 0.44
     
    #271     Oct 18, 2022
  2. The RUT debit Call Spread (#270) closed today in profit.

    Trade date: 14 October 2022
    Security: RUT
    Price at opening: 1,738.0
    Structure: AtM/ItM Call Debit Spread
    Expiry date: 21 October 2022
    Strikes: 1705 / 1740
    Opening Spread: 20.20
    Close date: 18 October 2022
    Trade duration: 4
    Closing spread: 30.00
    Profit / (Loss): 9.80
    Profit / (Loss): 48.5%
     
    #272     Oct 18, 2022
  3. Adam777

    Adam777

    You're looking very consistent with your trades and profits. Are your broad system signals generated from 4 hour bars or daily bars? I'm mainly using daily price action bars for direction and main targets. Yes it looks like Tesla is going to bounce higher, but I'm waiting for a higher close before I'm getting in
     
    Last edited: Oct 18, 2022
    #273     Oct 18, 2022
  4. qlai

    qlai

    Is this an intentional earnings play?
     
    #274     Oct 18, 2022
  5. I wish I could tell you that its part of a highly-honed earnings strategy...

    ...but no, I hadn't noticed that earnings are today! :banghead:

    Thanks for the heads-up. :thumbsup:

    Thankfully, this one is a small position, so if TSLA falls further, a total loss will not be a catastrophe.

    Per @Adam777 's view, it feels like there is slightly higher probability of a move upwards than a move downwards, and I'm looking for only about 25% on this one but will watch with interest later.
     
    #275     Oct 19, 2022
  6. I use EoD prices for swing trends.

    If I had the mental bandwidth, computer processing power, and commitment to disrupt my evenings (I'm in UK) I could take prices a minute before (US) close and make all trades then, but in practice for every adverse movement / missed opportunity overnight, there is a favourable movement / better entry doing things at a more leisurely pace after opening the following day.
     
    #276     Oct 19, 2022
  7. Adam777

    Adam777

    I understand where you're coming from. I'm catching the opening hour and the closing hour from Sydney. It's daylight savings, so open is at 12:30am. Then off to my day job in the morning. Just relying on GTC orders at my targets while I catch a few hours sleep. Once I get this systematic I'll get more sleep :)
     
    #277     Oct 19, 2022
  8. I'm irritated about exiting the ES Swing Trade (#270).

    I had closing orders between 4 and 5. Those at 5 filled yesterday, but as ES dropped, the spread increased away from my BtC. With ES below 3650 today, I widened those from 4 and paid 15 just now as ES rose towards 3670.

    Still closed at a profit of c.7 over four days, but frustrated. The overall position was:

    Trade date: 14 October 2022
    Security: ES
    Price at opening: 3,672.0
    Structure: AtM/OtM Put Credit Spread
    Expiry date: 21 October 2022
    Strikes: 3610 / 3670
    Opening Spread: 22.00
    Close date: 21 October 2022
    Trade duration: 7
    Closing spread: 10.00
    Profit / (Loss): 12.00
    Profit / (Loss): 31.6%

    A good week.
     
    Last edited: Oct 21, 2022
    #278     Oct 21, 2022
  9. Opened a Swing trade on oil.

    Trade date: 21 October 2022
    Security: CL
    Price at opening: 83.62
    Structure: AtM/OtM Put Credit Spread
    Expiry date: 28 October 2022
    Strikes: 81.25 / 83.50
    Opening Spread: 0.91
    Close date: 28 October 2022
     
    #279     Oct 21, 2022
  10. Unsurprisingly the TSLA fly (#271) expired worthless for a total loss.

    Opened verticals to benefit from possible falls in indices - ES prior to open, RUT since opening.

    Trade date: 24 October 2022
    Security: ES
    Price at opening: 3,782.0
    Structure: AtM/OtM Call Credit Spread
    Expiry date: 28 October 2022
    Strikes: 3785 / 3840
    Opening Spread: 23.25

    Trade date: 24 October 2022
    Security: RUT
    Price at opening: 1,734.0
    Structure: AtM/ItM Put Debit Spread
    Expiry date: 31 October 2022
    Strikes: 1735 / 1770
    Opening Spread: 20.30
     
    #280     Oct 24, 2022